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More than one million people travel by car from the suburbs to downtown Chicago each weekday. The commute using interstate highways (i.e. expressways and tollways) averages 90 minutes one way. Using side streets, the same commute takes only 60 minutes. Assume the length of travel time is all that matters to drivers. Does this represent an equilibrium condition? If so, explain why. If not, what change in driving behavior would result in an equilibrium condition? Why?
Suppose that product prices start rising but nominal wages do not. In that case,
Firms can have: Accounting losses and economic losses
What will be the final level of production for the market (after a Cournot equilibrium is reached)? How much is produced by each firm?
If the marginal revenue from a product is $15 and the price elasticity of demand is ?1.2, what is the price of the product?
A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 100 - 0.5P, and the marginal cost of production is $80. Determine the optimal number of units to put in ..
elucidate how many popsicles will be sold each day in the short run if the price rises
How could you use the concepts of marginal cost and marginal revenue to maximize profit? What information do you need to determine this? Without this information, how would you make a decision?
Government sponsored job training program is no different from any other form of resource transfer since resources have been taken from higher valued uses to a lower valued use.
Elucidate what will happen to the equilibrium price and quantity of pizzas sold and why (which curve has changed) for each of the following situations:
Consider two mutually exclusive alternatives stated in year - 0 dollars. Both alternatives have a three - year life with no salvage value. Assume the inflation rate is 1.59 %, an income tax rate of 39 %, and straight - line depreciation. The MARR ..
what happened to the overall price level. Explain how might you construct a measure of the change in the price level.
We have spent so much on our present office that we cannot afford to waste this money by moving now." Estimate the second partner's advice not to move downtown.
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